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HomeMy Public PortalAbout02 IntroductionINTRODUCTION Two Year Budget FY 2003-2004 • FY 2004-2005 CITY OF RANCHO MIRAGE August 1, 2003 To the Citizens of Rancho Mirage: This Budget document is the financial plan to meet your needs as Citizens of the. City of Rancho Mirage for Fiscal Year (FY) 2003-04 and FY .2004-05. It meets the City Council's policy direction and the community expectations for quality municipal services , a strong commitment to fiscal responsibility and a balance between operating revenues and expenditures. This document includes narrative summaries and details of expenditure requests for all of the General Fund Departments as well as the other City, Redevelopment Agency and, Housing Authority funds together with additional information about the City of Rancho Mirage and the two-year budget for FY 2003-04 and FY 2004-05. On July 3, 2003, the City CouncilBoards of Directors adopted the two-year budget for FY 2003-04 and FY 2004-05. Next year, during the month of April 2004, staff will review Council'sBoards' priorities and the projected estimates of FY 2003-04 revenues and expenditures as a basis for analyzing the adjustments necessary to the original FY 2004-05 budget. Staff will then prepare a report to present the proposed amendments to the Council/Boards for their review and. adoption, as presented or amended, ~ at a public hearing in June 2004. The advantage of presenting atwo-year budget every other year is the significant savings of staff time and effort during the budget preparation and adoption period which commences in January and ends in June. The staff time and effort saved every other year can then be devoted to other tasks. The budget places emphasis on proposed goals and objectives for the upcoming two fiscal years. In this document, we have provided descriptive information, budget highlights and goals and objectives for the General Fund Departments, Fire Tax Fund, Library Fund, Redevelopment Agency Funds and Housing Authority Funds. The City's key programs and activities occur in these Funds. Major Policy Issues I believe the major policy issue for the City Council and staff will be continuing our efforts to stimulate high quality commercial development in Rancho Mirage to maintain the City's excellent financial condition. Some thoughts are shared below: • Commercial Development Activities The City of Rancho Mirage's excellent financial condition is due in large part to a vibrant business community. Rancho Mirage maintains a healthy and varied business environment by carefully balancing business attraction, business retention and business expansion. Several important economic development projects and public-private partnerships will continue to progress during the coming fiscal years and promise to enhance Rancho Mirage's excellent economic base.. FY 2001-02 and FY 2002-03 were quite productive for economic development in Rancho Mirage and the next two years should prove equally positive: Citizens of Rancho Mirage August 1, 2003 Page 2 of 13 The River at Rancho Mirage, the 30-acre waterfront entertainment/retail center located at Bob Hope Drive and Highway 11 1, began opening in phases in the fall of 2001. Efforts are being made to ensure the continued opening of businesses. Efforts to develop the final 12-acre phase of the Monterey Marketplace at the corner of Dinah Shore and Monterey Avenue (just off I-10) will continue. Coordinate planning for redevelopment on the south side of Highway 111 at Bob Hope Drive. This area includes an old furniture store, an old nursery site and several undeveloped properties. Pursue special projects intended to further economic development programs, including preparation of an Available Commercial Property System and implementing a Commercial Broker Education Program to more effectively inform real estate professionals about the opportunities available in Rancho Mirage. The reuse of vacant buildings located along the Highway 111 corridor will continue to be actively pursued. The partnership with the Chamber of Commerce and Restaurant Association will be actively maintained. Undertake discussions with developers interested in pursuing a new mixed-use project for the 17- acre site on Highway 111, across from the new Library site. Assist with the marketing of large properties on the West Highway 111 corridor as interest develops. Creation of special projects such as the formulation of a Facade Enhancement Program. The initial target area would be the frontage road area on the north side of Highway 111 between San Jacinto and Button Drive. Create quality commercial development opportunities within the City beyond the Highway 111 corridor. • Residential Development Activities The City anticipates continuing strong growth in residential development. For the twelve months ended June 2003, building permits were issued for 472 single-family homes valued at approximately $136.7 million (a 1.59% decrease). This compares to 460 permits issued during the twelve months ended June 2002, valued at approximately $138.9 million. • City's Financial Condition The City continues to be in excellent financial condition. On June 30, 2002, the General Fund had an undesignated fund balance of $34,148,823. Undesignated fund balance is projected to rise to $37,312,169 (highest in the City's history) as of June 30, 2003. This occurs as a net result of an approximate $4.5 million operating surplus; $585,208 in third-party reimbursements for capital 2 Citizens of Rancho Mirage August 1, 2003 Page 3 of 13 improvement projects; $694,800 from land sale proceeds (Monterey Marketplace); and a $100,000 donation for the Bighorn Sheep fence. Undesignated .fund balance would have increased even more were it not for approximately $1.3 million in General Fund capital improvements and approximately $1.4 million in additional loans to the Redevelopment Agency's whitewater Capital Projects Fund. Undesignated fund balance at the end of FY 2003-04 is projected to rise to $39,533,496. This projected increase of approximately $2.2 million by-June 30, 2004, is due to an estimated $1.5 million operating su lus, $579,000 of third-party reimbursements for capital improvement projects plus approximately $1.2 million in loan repayments to the General Fund {$625,593 from the Parkland :Fund and $572,681 from the Redevelopment Agency) partially offset by $1,108,300 in General Fund capital improvements. The loan to the .Parkland Fund was made so the Parkland Fund could pay the City of Palm. Desert for Rancho Mirage's share of costs for the old and new sports complexes. This loan. will be fully. repaid in FY 2003-04. At June 30, 2004, the balance of the Redevelopment Agency's loan from the General Fund for capital improvements is projected to be approximately $6.5 million. Undesignated fund balance at the end of FY 2004-05 is projected to increase to $41,667,193. The projected increase of approximately $2.1 million by June 30, .2005, is due to an approximate $1.9 million operating surplus and an additional $1,114,095 loan repayment by the Redevelopment Agency to the General Fund,. partially offset by approximately $900,000 in General Fund capital improvements. At June 30, 2005, the loan balance is projected to decrease to $5,391,931. Information regarding the General Fund's undesignated fund balance, a key indicator of fiscal strength, and other related financial information is presented in the General Fund Summaries section of this budget document. It should be noted that the. City Council adopted a prudent reserve policy in February 1994 that established one year's operating expenditures as the minimum level of undesignated fund balance. In the event of natural disasters or other emergencies, the City would still be able to function-,. provide services to its residents and repair damage to its infrastructure during a period of reduced revenues. Rancho Mirage's strong financial condition results from bed tax generated mainly by the City's four convention/resort hotels, increasing retail sales and ample cash reserves that generate significant interest earnings. These three revenue sources .account for approximately 60% of the General Fund's $19.6 million operatin revenues in FY 2003-04 and approximately 61% of the General Fund's $20.5 million operatin revenues in FY 2004-05. General Fund Operating Expenditures The total General Fund operating budget for FY 2003-04 of $18,129,974 is $2.,784,259 (an 18.15% increase} more than the FY 2002-03 operating budget of $15,345,715. For FY 2004-05, the total General Fund operating budget of $18,631,531 is $501,557 (a 2.77% increase) more than the FY 2003-04 operating budget. The operating budgets for both fiscal years are .discussed in greater detali below. • Personnel Services Budget FY 2003-04 The General Fund operating budget provides .$6,026,262 .for personnel services (salaries and benefits) for FY 2003-04, an increase of $537,458 over the FY 2002-03 budget of $5,488,804. This 9.79% net increase is due to the following: 3 Citizens of Rancho Mirage August 1, 2003 Page 4 of 13 Effective August 3, 2003, the City Council salary was increased from $365 per month (set in 1992) to $750 per month pursuant to Ordinance No. 840. Personnel costs reflect a 4% increase in salaries for FY 2003-04. The three-year MOU between the City and the Rancho Mirage Employee Association (RHEA) that became effective July 1, 2000, expired on June 30,.2003. The budget incorporates a 4% salary increase approved by the City Council and RHEA as part of the extension of the existing MOU for another year ending June 30, 2004. The 4% salary increase is also budgeted for part-time employees. A 6% salary increase is budgeted for the City Manager and City Clerk. City employees elected to de-certify from Service Employees International Unit (SEIU) and form an independent association in FY 1999-2000. For FY 2003-04, we are budgeting fora 10% increase in medical insurance premiums, a 12% increase in dental premiums, both effective December 1, 2003, and a 5% increase in vision premiums effective January 1, 2004. Our percentage increase on December 1, 2002, was 7% for medical and 5% for dental. Our vision premiums did not increase during FY 2002-03. For FY 2003-04, the City's combined employer and employee contribution rate to the California Public Employees' Retirement system (CaIPERS) will go from 7% to 9.24% due to the effects of the sluggish economy and reduced stock market valuation. For FY 2003-04, two additional positions in the General Fund are authorized - a full-time Deputy City Clerk and an additional Associate Planner. For FY 2003-04, the City has retained the services of a law firm in lieu of an in-house. City Attorney and Legal Assistant resulting in a decrease of $240,433 in salary and benefit. costs. These two positions have been deleted from the Budget. The General -Fund operating budget provides $6,770,887 for personnel services (salaries and benefits) for FY 2004-05, an increase of $744,625 over the FY 2003-04 budget of $6,026,262.. This 12.36% increase is due to the following: Personnel costs reflect a 4% increase in salaries for FY 2004-OS for full-time and .part-time employees and management staff including the City Manager and City Clerk.. The actual salary adjustment will not be known until negotiations between the City .and RHEA for a new MOU beginning July 1, 2004, are completed, hopefully in the Spring of 2004. For FY 2004-05, we are also budgeting fora 10% increase in medical insurance premiums, a 12% increase in dental premiums, both effective December 1, 2004, and a 5% increase in vision premiums effective January 1, 2005. Staff will reevaluate these percentage increases in April 2004.. The City's combined employer and employee contribution rate to CaIPERS is anticipated to increase to 16.8% in FY 2004-05 from 9.24% in FY 2003-04 based on preliminary information received by the City. This is a projected increase that is also based on correspondence received in September 2002 from CaIPERS. The increase, which is subject to change, is also due to current economic conditions. 4 Citizens of Rancho Mirage August 1, 2003 Page 5 of 13 For FY 2004-05, no additional full-time positions in the General Fund have been authorized. • Operations, Maintenance and Department Capital. FY 2003-04 The FY 2003-04 budget provides $12,103,712 for operations, maintenance. and department capital items - a net increase of $2,246,.801(22.8%) from the FY 2002-03 budget of $9,856,911. The. increase is due primarily to the net effect of the following increases and decreases: Effective July 4, 2003, the City Council's car allowance was increased from $200 per month to .$250 per month. A net increase. of approximately $102,500 in the budget for the City Clerk is primarily due to $35,000 budgeted for the April 2004, General Municipal Election and $10,000 for a possible special election; $25,000 is budgeted. for professional and technical .services for specialized projects plus various increases due to the incorporation of the Records Division and front desk staff into the City Clerk's operations. The City Attorney's operations, maintenance and .department capital budget reflects an increase of approximately $405,600 due to the City retaining the services of a law firm in lieu of an in-house City Attorney and Legal Assistant. After deducting the salary and benefit savings of $240,433 resulting from the elimination of the City Attorney and Legal Assistant positions noted on page 4, the net increase over FY 2002-03 to the City Attorney's budget is $165,221. The net decrease of approximately $17,000 in Administration is due primarily to a $14,000 decrease in the recruitment budget and various decreases .due to the. transfer of the front desk staff to the City Clerk. Community Development's Planning Division reflects a reduction in professional and technical services resulting in a net decrease of $54,950. The FY 2002-03 budget reflected aone-time $55,000 expenditure for the preparation of a nexus study to convert the existing License Tax to the Development Impact Fee. The Public Works' Engineering Division has a decrease of approximately $101,000 due primarily to an approximate $85,000 decrease in professional, inspection and temporary agency services related to the anticipated decline in the pace of new development and construction plus an $11,000 decrease in the vehicle operations and meetings .and travel budgets to more closely reflect actual expenditures. The. Public Works' Street Maintenance Division budget has a net decrease of approximately $49,500 due primarily to a $57,400 decrease in traffic signal maintenance. and electricity as a result of the installation of energy-saving light emitting diodes (LED) used for traffic signals, a $35,000 decrease in street sweeping because of CVAG's regional street sweeping program absorbing several city- swept streets previously paid for by the City and an approximate $16,400 decrease in street-related repairs. These decreases are partially offset by an $85,000 increase in the automotive budget for the purchase of a Compressed Natural Gas (CNG) Sport Utility Vehicle (to replace the current 1996 Citizens of Rancho Mirage August 1, 2003 Page 6 of 13 Ford Ranger) and a CNCi dump truck. A reimbursement in the amount of $30,000 will be paid from the Air Pollution Reduction Fund {Fund 239) towards the purchase of the CNG vehicles. The net increase of approximately $111,700 in the Public Works' Buildings and Grounds. budget is due primarily to a $30,000 expenditure to replace half of the sixty variable air volume (VAV) units in City Hall which are used to control heating and air conditioning (remaining thirty will be replaced in FY 2004-05); $15,000 for the City's share of landscaping maintenance at the Monterey Avenue and Interstate 10 Interchange; $10,000 to address abatements associated with Africanized Bees; $10,000 for the annual maintenance of the newly constructed Bighorn Sheep fence., and an approximate $64,900 increase in capital for the purchase of a CNG vehicle (replaces the current 1995 F250 truck) and for the purchase of various pieces of equipment which are currently rented when needed. A reimbursement in the amount of $10,000 will also be paid from the Air Pollution Reduction Fund towards the purchase of the CNG vehicle. The net increase of approximately $953,000 in the Public Safety budget is primarily due to increased staffing to attempt to reduce our rising burglary and theft rate and includes a 9.43% hourly rate increase for patrol deputies and an additional $50,000 for the development of the Mission Hills COPS Program. The General Government Division reflects a net increase of approximately $1,149,700 due primarily to an increase in the operating transfer to the Fire Tax Fund ($969,575), increase in insurance rates ($130,700), increase in professional and technical services ($35,000) for an aerial photo shoot of the City to update existing wall murals and working photos and an increase in -lease payments ($22,000) for new copiers purchased in FY 2002-03. This latter expenditure is partially offset by a decrease ($10,000) in office equipment maintenance as maintenance costs on .the newlyleased copiers are part of the lease payments. The increase of approximately $31,000 for Regional Planning and Implementation is due primarily to $10,000 being budgeted for planning and implementation of the Multiple Species Habitat Conservation Plan (MSHCP), and a $20,000 increase for public utility and legislative consulting services as the City participates with the City of Indian Wells to retain advocacy services related to municipal electric utilities. The net decrease of approximately $409,000 for Special Programs is due primarily to a $500,000 decrease for special contributions: In FY 2002-03 the City made the second and final payment of $500,000 to the Coachella Valley campus of California State University. The decrease is partially offset by the first of five $50,000 annual payments to the McCallum Theater, an increase of $31,200 for the Resident Recreational Golf Club program to reflect actual expenses related to the Club and $50,000 for the Health and Medical Welfare Commission established in October 2002. The net increase of apps®ximately $107,000 in the Information aid Marketing budget is due primarily to a $72,300 increase in anticipated payments to the Convention and Visitors' Authority and ,hotels for promotional efforts benefitting tourism in Rancho` Mirage.. Additional expenditures include $25,000 for the production of a street map and street name index and $28,800 for other City marketing efforts such as $6,000 for an article in Palm Springs Life, $4,800- for a video produced by KOCE Desert Cities Report and $18,000 fore the production of a second video tape promoting the City .These increases are partially offset by a $20,000 decrease for professional consulting services. 6 Citizens of Rancho Mirage August 1, 2003 Page 7 of 13 FY 2004-05 The FY 2004-05 budget provides $11,860,643 for operations, maintenance and department capital items. This constitutes a net decrease of $243,069 (2.01 %) from the FY 2003-04 budget of .$12,103,71.2. The decrease is due primarily to the net effect of the following increases and decreases: A decrease of approximately $31,000 in the City Clerk's budget is primarily due to FY 2004-05 being a non-election year. $35.,000 was budgeted in FY 2003-04 for the April .2004 General Municipal Election. A decrease of approximately $40,000 in the Information Services budget is primarily due to a $28,200 net decrease in professional and technical services and a $24,000 decrease in computer enhancements partially offset by a net $9,000 increase in furniture and equipment. FY 2003-04's budget provides for the evaluation of the City's fund accounting. (Pentamation) and permitting software, the installation of a laserfiche weblink and web site portal software, and the purchase of a new permit and imaging server. FY 2004-OS's budget provides for the replacement of the City's telephone system. The increase of approximately $38,600 in the Community Development's Planning Division is primarily due to a $37,500 increase in professional services. FY 2003-04's budget addressed additional design for the Monterey Park and the completion of the community profile, whereas FY 2004-05 has increased funding for the general plan update and special .planning studies. Community Development's Building and Safety Division reflects a decrease of $20,000 budgeted for consulting and plan check services and substitute inspectors. Public Works' Engineering Division reflects a net decrease of $30,000 in professional and technical services due to $40,000 being budgeted in FY 2003-04 for a pavement inventory update and a traffic control device inventory. A net decrease of $50,200 in the Public Works' Street maintenance budget is due primarily to the replacement in FY 2003-04 of a .1996 Ford Ranger with a CNG Sport Utility Vehicle for $35,000 and the replacement of a 1988 GMC dump .truck with a CNG dump truck for $50,000 partially offset by increases of $25,000 for traffic signal maintenance and electricity, $5,000 for street striping and $5,000 for street sweeping. The decrease of approximately $72,900 in the Public works' Buildings and Grounds budget is due primarily to the replacement of a 1995 F250 truck with a CNG vehicle for $35,000 along with the purchase of equipment for approximately $55,000 in prior.. FY 2003-04. These decreases are partially offset by a $15,200 anticipated increase in maintenance costs. The net increase of approximately $178,800 in the Public Safety budget is due primarily to the anticipated increased cost of Sheriff services of $209,005 (no additional staff are budgeted) partially offset by a $30,500 decrease for the Mission Hills COPS Programl FY 2003-04 budgeted for the purchase of a patrol vehicle for the Mission Hills COPS Program. The General Government Division's net decrease of approximately $193,200 is primarily due to a decrease in the General Fund's operating subsidy ($278,880) to the Fire Tax Fund, decrease of Citizens of Rancho Mirage August 1, 2003 Page 8 of 13 $209000 in holiday decorations (FY 2003-04's budget included purchase of decorati®ns for the new Council Chamber) and a decrease in professional and technical services due to $35,000 budgeted in FY 2003-04 for an aerial photo shoot of the City. These decreases are partially offset by an operating subsidy ($125,,000) to the Citywide Landscaping Fund for the maintenance of medians and an increase ($8,680) for animal control. The subsidy to the Fire Tax Fund decreased due to the anticipated completion of station remodeling projects in FY 2003-04. In subsequent years., the subsidy is anticipated to increase as operating expenditures exceed revenues. A recap of General Fund expenditures by department can be found in the General.Fund Departmental Expenditure Summary section of this budget document. Details of the expenditures by department and their respective divisions can be found in the pages following this section. General Fund Operating Revenues General Fund operating revenues for FY 2003-04 total $19,682,327 - an amount $1,552,353 in excess of the $18,129,974 operating budget. For FY 2004-05, General Fund operating revenues total $.20,532,332 - an amount $1,900,801 in excess of the $18,631,531 operating budget. These reflect City Management's policy that operating revenues equal or exceed operating expenditures. Significant operating revenues, which are summarized in the General Fund revenue section of this budget document together with historical data concerning revenues, include sales tax, transient occupancy tax, interest earnings and reimbursements from the Redevelopment Agency and Housing Authority for staff support provided by the General Fund. Library Fund While only seven years old, the Library has become one of the ten busiest public libraries in California, as measured by per capita checkouts. During the past year the Library was rated the third best. public library among California's 179 public library jurisdictions according to Hennen's American Public .Library Ratings. The budget for FY 2003-04 enables the Library to continue its operations that provide a full range of services to an increasing number of patrons. The FY 2004-05 budget provides funds for additional staff and. operational costs for opening the new library in January 2005. The Library Fund at the end of FY 2004-05 is projected to have a fund balance in excess of ,$700,000. The Library budgets are discussed in the Library section of this budget document. Redevelopment Agency The FY 2003-04 and FY 2004-05 Budget was developed by staff to identify and implement with available funds those projects that are believed to be important to the community during the upcoming two fiscal years. Some of the major aspects of the FY 2003-04 and FY 2004-05 Redevelopment Agency Budgets are discussed in the Redevelopment Agency section of this budget document. It includes $225,000 for various capital improvements in FY 2003-04 and $8,015,200 in FY 2004-OS for both project areas. Regarding .the Redevelopment Agency's financial condition, the whitewater Project Area ,Capital. Projects Fund is owed $6.1 million by the Riverside County Transportation Commission (RCTC) for the prior widening of Highway 111. The repayment is projected to occur as follows: $l.6 million in FY 2003-04. $1.8 million in FY 2004-05, $1.9 million in FY 2005-06 and $800,000 in FY 2006-07. In addition, at Jun 30, 2002,. the whitewater Project Area Capital Projects Fund owed the General Fund $5,636,919. By June 30, 2003, this amount is projected to increase to approximately $7.1 million. Repayments from RCTC 8 Citizens of Rancho Mirage August 1, 2003 Page 9 of 13 through the Coachella Valley Association of Governments (CVAG) will be used to substantially repay this debt. Staff is currently reviewing the financial feasibility of issuing tax allocations bonds in early FY 2003-04 for capital projects including affordable housing projects. However, since staff has not yet developed a proposal to the RDA Board of Directors, no revenue from bond proceeds is budgeted. Housin Authority Created to promote and encourage retention, rehabilitation and development of "affordable" housing units, the FY 2003-04 and FY 2004-05 Housing Authority Budgets continue to identify and implement projects that will benefit. households not exceeding the "affordable" income limits. The FY 2003-04 and FY 2004-05 Housing Authority Budgets are discussed in the Housing. Authority section of this budget document. The projected undesignated fund balance is approximately $3.3 million at June 30, 2004. At June 30, 2005, the Housing Authority Fund will have a projected undesignated fund balance in the amount of approximately $6.7 million. Capital Improvements The Capital Improvements Program totals $2,707,300 for FY 2003-04, $18,026,400 for FY 2004-05 and $40,739,165 for projects continued from prior years' appropriations. Information concerning specific projects of the City, Redevelopment Agency and Housing Authority can be found below in the Capital Improvements section. It should be noted, in .regards to several budgeted utility undergrounding projects identified in the following discussion of capital improvements, that on July 31, 2003, the City Council/Redevelopment Agency Board of Directors unanimously approved a .major policy change. Specifically, all unfulfilled priorities previously established regarding undergrounding of overhead utility lines are rescinded.. Future projects are directed toward undergrounding overhead lines in the City's various residential neighborhoods.. Following completion of these residential projects, the undergrounding of utilities along the City's major arterial roadways will be reconsidered. Consistent with the City's long-established budget practices, the changes made on July 31St will be formally approved by resolution as part of the annual mid-year budget adjustments that will occur in March 2004. • City Capital Improvements The City's capital improvements budget, excluding the Redevelopment Agency and Housing Authority, totals $2,482,300 for FY 2003-04, $10,011,200 for FY 2004-05 and $3,960,020 for projects continued from prior years' appropriations. There are three funding sources for the capital improvement budget. Below are the three funding sources and their projects: First Category of Capital Improvements Funding Sources -General Fund's Unrestricted Cash The first category, which totals $1,108,300 for FY 2003-04, represents General Fund capital improvements financed from unrestricted revenues and fund balance. Specific improvements include $115,000 for the annual .slurry seal and rubberized crack sealing maintenance on various public streets (additional funding of $285,000 for this $400,000 project is provided in the Gas Tax 9 Citizens of Rancho Mirage August 1, 2003 Page 10 of l3 Fund), $205,000 to grind and overlay with asphalt rubber hot mix Gerald Ford Dr. from Plumley Dr. to Los Alamos (additional funding of $419,000 in the Measure A Fund), $298,000 to grind and overlay with asphalt rubber hot mix Frank Sinatra Dr, between Morningside Dr. and Highway 111 (additional funding of $400,000 in the Measure A Fund), and $490,300 for median rehabilitation on Frank Sinatra Dr, between DaVall and Morningside. For FY 2004-05, the first category totals $881,200 in capital improvements: $406,000 to grind and overlay with asphalt rubber hot mix Highway 111 from Mirage Cove to west city limits (additional funding of $100,000 in the Gas Tax Fund and $100,000 in the Measure A Fund), $125,200 to grind and overlay with asphalt rubber hot mix Bob Hope Dr. from the Community Blood Bank to Frank Sinatra Dr. (additional funding of $100,000 in the.. Gas Tax Fund and $100,000 in the Measure A Fund), $150,000 to construct a right turn lane on Bob Hope Dr. at Country Club Dr. and $200,000 for street improvements on Monterey Ave. from Frank Sinatra Dr. to Country Club Dr. (additional funding of $265,000 is budgeted in ,the License Tax Fund and $600,000 is budgeted in Measure A Fund for a total project budget of $1,065,000). For projects continued from prior years' appropriations, the first category totals $999,020: $754,020 for PM,o stabilization projects on various roads ($479,000 to be reimbursed by CVAG), $100,000 to construct the Mirada/Lodge pedestrian trail (costs to be reimbursed by Mirada) and $145,000 for bike path landscaping and enhancements on Frank Sinatra Dr. at the Whitewater Channel. Second Category of Capital Improvement Funding Sources -License Tax Fund The second category, in the amount of $220,000 for FY 2003-04, represents General Fund capital improvements financed from the license tax on new development. This budget includes the first of ten annual payments of $220,000 to the Agua Caliente Band of Indians for advancing the City's portion of the Bob Hope Drive and Dinah Shore Drive widening project. For FY 2004-05, the second category totals $7,780,000 in capital improvements, $220,000 for the second of ten annual payments to the Agua Caliente Band of Indians for advancing the City's portion of the Bob Hope Drive and Dinah Shore Drive widening project, $265,000 for improvements on Monterey Ave. from. Country Club to Frank Sinatra (additional funding for $200,000 in the General Fund and $600,000 in the Measure A Fund for a total project budget of $1,065,000), $6,200,000 for utility undergrounding, $895,000 for public buildings and $200,000 for. seconaary entry monuments. Specitlc projects for utility undergrounarng Include $700,000 for Bob Hope Dr. from Frank Sinatra Dr. to Dinah Shore Dr. ($4,600,000 is also budgeted in the Northside Capital Projects Fund), $600,000 for Country Club Drlve from .Monterey Ave. to Vista Del Sol, $2,100,000 for Monterey Ave. from .Country Club Dr. to Clancy Lane and $2,800,000 for Vista Del Sol from Country Club Dr. to Frank Sinatra Dr. Public. buildings projects include $165,000 to re- roof and remodel the parking structure at City Hall and $730,000 towards the City's third fire station ($2,850,000 is also budgeted in the Northside Capital Projects Fund). For projects continued from prior years appropriations, the second category totals .$2,350,000, $2,250,000 for the Monterey Community Park ($2,250,000 is also budgeted in the Northside Capital Projects Fund), and. $100,000 for the construction and landscaping of a new median on Country Club Dr. from John L. Sinn Rd. to Cholla Lane ($100,000 is also budgeted in the Northside Capital Projects Fund). 10 Citizens of Rancho Mirage August 1, 2003 Page 11 of 13 Third Category of Capital Improvements Funding Sources -City's Other Special Revenue Funds The third category, totaling $ l,154,000 for FY 2003-04, represents capital improvements financed by the City's other Special Revenue Funds. These improvements include $285,000 for the annual road slurry and asphalt concrete overlay program (with $ 115,000 budgeted in the General Fund), the annual $50,000 (eighth of ten) reimbursement to CVAG for the City's share of the. previously constructed I-lO/Monterey Avenue overpass, $419,000 to grind and overlay with asphalt rubber hot mix Gerald .Ford Drive between Plumley. and Los Alamos ($205,000 is budgeted in the General Fund) and $400,000 to grind and overlay ,with asphalt rubber hot mix Frank Sinatra Dr. between Morningside Dr. and Highway 1 l 1($298,000 is budgeted in the General Fund). For FY 2004-05, the third category totals $1,350,000 in capital improvements: $300,000 for the annual road slurry, the annual $50,000 (ninth of ten) reimbursement to CVAG for the City's share of the previously constructed I-1OIMonterey Avenue overpass, $200,000 to grind and overlay with asphalt rubber hot mix Highway 111 from Mirage Cove to the west city limits, ($406,000 is budgeted in the General Fund), $200,000 to grind and overlay with asphalt rubber hot mix Bob Hope Dr. from the Community Blood Bank to Frank Sinatra Dr. ($125,200 is budgeted in the General Fund) and $600,000 towards median and street improvements on Monterey Ave. from Frank Sinatra Dr. to Country Club Dr. (additional funding of $200,000 is budgeted in the General Fund and $265,000 is budgeted in the License Tax Fund for a total project budget of $1,065,000).. For projects continued from prior years' appropriations, the third category totals $611,000 for capital improvements to the City's two fire stations. As noted above, the City is continuing to invest in the maintenance and improvement of its infrastructure. The ,life cycle of a roadway in Rancho Mirage is approximately 30 - 40 years provided the City continues to perform routine pavement management maintenance. The life of the pavement is affected by the dry desert climate. The sun's ultra. violet rays accelerate the loss of asphalt concrete oil,. causing cracking .and the degradation of the pavement surface. To help preserve the pavement life, the City has. a very aggressive pavement maintenance program which includes asphalt rubber, crack sealing, latex modified road slurries and asphalt rubber overlays. The City's Public works .Department utilizes state-of the-art computer software for pavement management. This software assists staff in the monitoring of the condition of the City streets and helps staff determine when maintenance should occur, what maintenance methods should be considered and what maintenance will cost. The Pavement Management Program being administered is causing the City's roadways to last longer, thereby reducing the impact on the City's- operating budget. • Redevelopment Agency Capital Improvements As noted at the beginning of the Capital Improvements section, on July 31, 2003, several changes regarding utility undergrounding proj ects were made. The below undergrounding proj ects do not reflect these changes. The $225,000 budgeted for FY 2003-04 by the Redevelopment Agency for capital improvements is for the construction of a traffic signal at the new Library's main entrance. For FY 2004-05, the total budget for the Redevelopment Agency for capital improvements is $8,OI5,200 which includes $4,600,000 for undergrounding the transmission and distribution lines on .Bob Hope Dr. from Frank Sinatra Dr. to Dinah Shore Dr. ($700,000 is budgeted in the License Tax Fund), $565,200 for median island rehabilitation on Country Club Dr. from Sand Dune to Lake Mirage and $2,850,000 for land acquisition and construction of a third fire station ($730,000 is budgeted in the License Tax Fund}. 11 Citizens of Rancho Mirage August 1, 2003 Page 12 of 13 For projects continued from prior years' appropriations, the budget for the Redevelopment Agency for capital improvements is $20,741,500 which includes $375,000 for street improvements on Peterson Road, $774,500 for traffic signals and safety lighting on Bob Hope Dr. at the Rancho Mirage Country Club, Dinah. Shore Dr. at The Westin, and Gerald Ford Dr. at Mission Hills, $82,000 for right turn deceleration lanes on Gerald Ford Dr. at San Marino and Em Mirage, $1,9b0,000 for utility undergrounding on Highway 111 from Frank Sinatra to the west City limits, $250,000 for design of utility undergrounding projects, $100,000 for a new median on Country Club Dr. ,from John L. Sinn Rd. to Cholla Lane ($100,000 budgeted in License Tax), $2,250,000 for the Monterey Community Park ($2,250,000 is also budgeted in the License Tax Fund}, $14,500,000 for the new Library and $450,000 for the concrete lining of the Whitewater Channel slope ($450,000 is also budgeted in the Housing Authority Fund). • Housing Authority Capital Improvements There are no new projects budgeted in FY 2003-04 or FY 2004-05 for the Housing Authority.. For projects continued from prior years' appropriations, the budget for the Housing Authority for capital improvements is $16,037,645. The projects include $2,211,817 for infrastructure assistance for the future development of an affordable housing project near the Monterey Marketplace, $5,375,828 for Santa Rosa Villas, $8,000,000 for the proposed Senior .Project on San Jacinto and $450,000 for the concrete lining of the Whitewater Channel slope ($45.0,000 is also budgeted in the Northside Capital Projects Fund). Additional Information Information including staff salary schedule and a glossary of terms is provided in the Additional Information section of this budget document. Awards for Outstanding~Financial Presentation The City Council and staff take the. stewardship of public -funds seriously. We strive for excellence in the preparation and communication of financial information to the general public and particularly to the Citizens of Rancho Mirage. For the fouth time, the California society of Municipal Funance Officers (CSMFO) presented the City the Award for Excellence in Operational Budgeting for our FY 2001-02 and FY 2002-03 two-year budget. The Government Finance Officers Association of the United States and Canada (GFOA) presented, for the f fth time, the Distinguished Budget Presentation .Award to the City for our FY 2001-02 and FY 2002-03 two- yearbudget. In order to receive these budget awards, a governmental unit must publish a budget document that meets established program citeria as 1) a policy document, 2) an operational guide, 3) a financial plan, and 4) a communication device. The City's receipt of these awards is a direct reflection of the commitment of the City Council and staff to prepare an informative and thorough budget document. We believe our current two-year budget for FY 2003-04 and, FY 2004-05 continues to conform to program requirements and we will submit this year's budget document for award consideration to CSMFO and GFOA. 12 Citizens of Rancho Mirage August 1, 2003 Page 13 of 13 In addition to these budget awards, the City has received the Certificate of Achievement for Excellence in Financial Reporting for our annual financial report .from GFOA and CSMFO for twelve and thirteen consecutive years, respectively.. In 2001, for the third time, the City received the .Municipal Treasurer's Association of the United States and Canada's Certification of Excellence Award for our investment policy, City Blueprint I would like to acknowledge my fellow members of the City Council for their participation in the development of this two-year budget. Our appreciation for a job exceptionally well done is extended to our., Administrative Services Director Scott Morgan and to our entire staff for their tireless efforts in putting together the data for this two-year budget. The budget serves as a "Blueprint" of the City's plan for expenditure of public funds. It is this "Blueprint" that identifies what services are to be delivered to you during the upcoming two fiscal years and in some cases beyond-..The manner in which these services are provided is dictated by this document in that it establishes daily operational funds, staffing levels and capital improvement expenditures. We, the City Council and the employees of the. City of Rancho Mirage, continue to pledge our commitment and dedication to .providing the high quality service that you expect and have a right to receive. Respectfully submitted, G. Dana Hobart Mayor 13 14 CITY OF RANCHO MIRAGE SUMMARY OF THE TWO-YEAR BUDGET PROCESS BUDGET ADOPTION The City of Rancho Mirage first implemented the two-year budget cycle for Fiscal Years (FY) 2001-02 and FY 2002-03 in order to achieve time and cost efficiencies over an annual budget. Under the City's two-year budget cycle, the preparation of a second year budget document is eliminated. The City of Rancho Mirage's annual operating and capital improvements budgets are adopted by resolutions for the two fiscal years that begin July 1 of each fiscal year. Separate resolutions are adopted by the City Council and the Boards of Directors of the Library, Redevelopment Agency, Community Services District and the Housing Authority for the specific funds under their supervision. BUDGET FORMAT The budget document is organized by the City of Rancho Mirage's legal entities -the City, the Redevelopment Agency and the Housing Authority. They are further subdivided into organizational units referred to as departments/divisions, programs or funds. Each unit represents a service or activity and emphasizes program planning, evaluation, resource allocation and financial management. At the beginning of each unit presented, a narrative is provided. It includes a description of the unit, listing of the prior year's accomplishments, listing of the goals and objectives, budget summary, budget highlights, staffing summary and justifications for new positions requested, if applicable. BASIS OF ACCOUNTING The individual fund budgets are developed on a modified accrual basis of accounting in accordance with generally accepted accounting principles with certain exceptions. For example, advances from the General Fund to other funds are budgeted as expenditures in the General Fund and as revenue in the funds receiving the advances. Repayment of advances is budgeted as revenue in the General Fund and as an expenditure in the fund repaying the advance. Under the modified accrual basis of accounting, revenues are considered susceptible to accrual when they become both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues, including property taxes, are considered available if they are collected within sixty days after year end. Expenditures are recorded when the related fund liability has been incurred. Governmental fund liabilities are not considered current until they are expected to be liquidated with expendable available financial resources. Under this method, amounts due on demand are recorded as an expenditure and a current liability in the governmental fund from which payments are expected to be paid. Fund budgets are not adopted for the Joint Powers Financing Authority or for special assessment districts that account for bond proceeds and associated annual debt service. Effective budgetary control is alternatively achieved through bond indenture provisions. 15 BUDGET AMENDMENTS For Second Year Budget During the month of April, in the second year of the two-year budget cycle, staff reviews City CounciU Boards of Directors priorities and the projected estimates of the second year budget to use as a basis of analyzing the adjustments necessary to the original second year budget. Staff then prepares a report to present the proposed adjustments to the City CounciUBoards of Directors for their review and adoption, as presented or amended, at a public hearing in a scheduled City CounciUBoards of Directors meeting in June. During the Fiscal Year During the fiscal year, the City CounciUBoards of Directors may, at their discretion, authorize amendments to budgeted revenues and expenditures and the amendments are input to the automated budget system. Resolutions to formally adopt the amendments are only done twice ayear -generally in February for amendments prior to that time and a second time after June for amendments approved after February. In addition to the above amendments, staff presents mid-year and year-end reviews of the budget to the City CounciUBoards of Directors generally in February and after June. This provides the opportunity for adjustments if needed to budgeted revenues and expenditures based on actual results during the first and second half of the year. Expenditures for General Fund Divisions cannot exceed amounts budgeted within the objects of salaries and benef ts, operations and maintenance and capital. For other funds, expenditures cannot exceed the total amount budgeted for each fund. The City Manager is authorized to transfer appropriations within an obj ect of a General Fund Division and within total fund appropriations for other funds. The City CounciU Boards of Directors approve all other changes. BUDGET CALENDAR The budget process commences in late January with the preparation for distribution of various budget instructions by the Finance Division of the Department of Administrative Services. Requested budgets are then submitted by the Departments to the Finance Division in February or March. In April the City Manager, Department Heads and other key staff attend atwo-day budget workshop. The purpose of the workshop is ~ to review the draft of the preliminary budget including both revenue assumptions and expenditure requests. Upon completion of the workshop, the preliminary budget is completed and distributed to the City Council in May and made available to the public for review. Subsequent to distribution of the preliminary budget, the budget is discussed. with the City CounciUBoards of Directors at one or more public meetings and the City Manager generally meets individually with members of the City CounciUBoards of Directors at their request to discuss the preliminary budget. The operating and capital portions of the budget are adopted by resolution at a public hearing(s). A five-year Capital Improvements Program (CIP) Budget is prepared and presented to the City Council. The projects identified for years 3-5 of the CIP are tentative and subject to future changes. Appropriations are only formally adopted for the first two years of the five-year CIP. 16 Following is the actual budget calendar used for FY 2003-04 and FY 2004-05. DATES CY 2003 ACTIVITIES February 5 Distribution of budget package (calendar, forms and financial reports as of month-end January 31, 2003) by Finance. Staff February 5 - March S Preparation of budget requests by departments and initial preparation of preliminary budget document by Finance Staff February 19 Meeting with department heads and. budget managers for initial discussion of capital improvement projects (CIP) March 5 Deadline for submission of all budget worksheets, activity detail pages and narratives by departments to Finance Staff March 10 - 31 Input of budget figures and preparation of preliminary budget pages by Finance Staff March 19 Meeting with department heads and budget managers to discuss assumptions for ten- year projections and 5 year CIP Budget March 31 Distribution of budget pages and narratives to respective departments for review April 1- 7 Review of respective budget pages by departments April 7 Deadline to submit final changes to the preliminary budget document by departments to Finance April 8 -15 Finance Staff to implement final budget changes submitted by the departments and finalize preliminary budget document for the budget workshop April 23 - 24 Budget workshop attended by the City Manager, .department heads and budget managers April 25 -May 14 Finance Staff to implement changes from the budget workshop, print and prepare preliminary budget document for budget team distribution May 14 Distribution of preliminary budget document to budget team for review May 19 - 23 Final budget changes, printing and preparation of the Preliminary Two-Year Budget May 23 Distribution of the Preliminary Two-Year Budget to City Council and budget team. May 23 City Council and public review process July 3 Public hearing and adoption of budget, as presented or amended, by City Council/ Boards of Directors 17 RESOLUTION N0. 2003-68 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO MIRAGE, CALIFORNIA, ADOPTING THE TWO-YEAR BUDGET FOR FISCAL YEARS 2003- 2004 AND 2004-2005\ WHEREAS, Government Code ,Section 37208 (B) states that warrants or checks drawn. in payment of demands certified.as conforming to the budget need not be audited by the City Council if the budget is adopted by Resolution; and WHEREAS, the City Council reviewed the Two-Year Budget for Fiscal Years 2003-2004 and 2004-2005. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Rancho Mirage tha the City Council hereby adopts the Two-Year City Budget for Fiscal Years 2003-2004 and 2004-2005 by the adoptionof this Resoluiton APPROVED AND ADOPTED BY this 3rd day of July 2003. CITY OF RANCHO MIRAGE CITY COUNCIL G. Dana Hobart Mayor ATTEST: Elena keeran, CMC City Clerk APPROVED AS TO FORM: Steven B Quintanilla City Attorney RESOLUTION N0. 2003-LB-25 A RESOLUTION OF THE LIBRARY BOARD OF .THE CITY OF RANCHO MIRAGE, CALIFORNIA, .ADOPTING THE TWO-YEAR BUDGET FOR FISCAL YEARS 2003-2004 AND 2004-2005 WHEREAS, Government Code Section 37208 (B) states .,that warrants or checks drawn in payment of certified demands need not be audited by the Library Board if the budget is adopted by Resolution; and WHEREAS, the Library Board reviewed the Two-Year Library Fund Budget for Fiscal Years 2003-2004 and 2004- 2005. NOW, THEREFORE, BE IT RESOLVED by the. Library Board of the City of .Rancho Mirage that the Board hereby adopts the Two-Year Library Fund Budget for Fiscal Years 2003-2004 and 2004-2005 by the adoption of this-.Resolution. PASSED APPROVED and ADAPTED this 3rd day of July 2003. CITY OF RANCHO MIRAGE LIBRARY BOARD G. Dana Hobart Chairman ATTEST: Elena Keeran, CMC Secretary APPROVED AS TO FORM: Steven B. Quintanilla Board Counsel RESOLUTION NOe CSD-2003-06 A RESOLUTION OF THE COMMUNITY SERVICES DISTRICT BOARD OF DIRECTORS OF THE CITY OF RANCHO MIRAGE, CALIFORNIA, ADOPTING THE TWO-YEAR BUDGET FOR FISCAL YEARS 2003-2004. and 2004-2005 WHEREAS, Government Code Section 37208 ~B) states that warrants or checks drawn in payment of certified demands need not be audited by the Community Services District Board if the budget is adopted by Resolution; and WHEREAS, the Board of Directors reviewed the Two-Year Community Services District Budget for Fiscal Years 2003- 2004 and 2004-2005. NOW, THEREFORE, BE LT RESOLVED by the Community Services District Board of Directors of the City of Rancho Mirage that the Community Services District Board hereby adopts the Two-Year Community Services District Budget for Fiscal Years 2003-2004 and 2004-2.005 by the adoption of this Resolution. PASSED APPROVED and ADOPTED this 3rd day of July 2003. CITY OF RANCHO MIRAGE COMMUNITY SERVICES DISTRICT G. Dana Hobart Chairman ATTEST: Elena Keeran, CMC Secretary APPROVED AS TO FORM: Steven B. Quintanilla Board Counsel 20 CITY OF RANCHO MIRAGE PROPOSITION 4 - APPROPRIATIONS LIMIT The Appropriations Limitation imposed by Proposition 4 (Article XIIIB) was approved by the voters in November 1979. It was modified by Proposition 111 approved by the voters in June 1990. Commonly referred to as the Gann Limit, it creates a restriction on the amount of revenues classified as tax proceeds which can be appropriated for expenditure in any fiscal year. The Limit is based on actual appropriations during FY 1978-79, the base year, and is increased each year using the change in population and the change in California per capita personal .income. Examples of tax proceeds include property, sales and transient occupancy taxes as well as motor vehicle license fees. The Limit does not apply to other revenues classified. as non-tax proceeds such as fines and State subventions restricted to specific uses such as gasoline taxes and fees intended to recover the cost of providing services. During any fiscal year, cities may not appropriate any proceeds of taxes they receive in excess of their Limit. If they receive excess funds in any one year, they carry them into the subsequent year to be used if they are below their Appropriation Limit that year. Any excess funds remaining after the second year have to be returned to the taxpayers by reducing tax rates or fees. As an alternative, a majority of the voters may approve an "override" to increase the Limit. The law only allows such an override to last for four years maximum. The Appropriations Limit applies to "all taxes levied by and for" an agency. The most common exceptions to the Limit's requirements are for: • Special Districts which levied a property tax of less than $.015 in FY 1978-79 • Redevelopment agency property tax increment funds; a court determined that redevelopment agencies do not have the power to levy a property tax • Enterprise Funds • Benefit assessment districts For most cities, the funds constrained by the Limit will include the General Fund, capital project funds, and special revenue funds. The Appropriations Limit for the City of Rancho Mirage for FY 2003-2004 is $41,690,600-an increase of approximately 6.67% over the Appropriations Limit for FY 2002-2003. Estimated tax proceeds subject to the appropriations limit based on the FY 2003-2004 Adopted Budget total $12,589,391, an amount $29,101,209 under the appropriations limit for FY 2003-2004. For purposes of the Limit calculation, either the change in population of Rancho Mirage (4.26% increase from January 2002 to January 2003) or Riverside County (3.69% increase during the same time period) is to be adopted by the City Council together with the 2.31 % increase in per capita personal income. The resolution adopting the Proposition 4 Appropriations Limit for Fiscal Year 2003-2004 provides for the increase in Rancho Mirage population since it results in a larger Appropriations Limit for the City. 2l CITY OF RANCHO MIRAGE CALCULATION OF APPROPRIATIONS LIMIT FISCAL YEAR 2003-2004 APPROPRIATIONS LIMIT FOR FY 2002-2003 a $ 39,084,300 ADJUSTMENT FACTORS: PRICE FACTOR - CHANGE IN CALIFORNIA PER CAPITA PERSONAL INCOME FACTOR 2.31 POPULATION GROWTH FACTOR - RIVERSLDE COUNTY 3.69 CITY OF RANCHO MIRAGE 4.26 <-------- ** CONVERSION OF ADJUSTMENT FACTORS TO RATIOS: (FACTOR + 100)1400 PRICE FACTOR - b 1.0231 POPULATION GROWTH FACTOR - c 1.0426 APPROPRIATIONS LIMIT FOR FY 2003-2004: $ 41,690,600 2002.2003 APPROPRIATION LIMIT(a) x CONVERTED PRICE FACTOR (b) x CONVERTED POPULATION GROWTH FACTOR (c) ** Population growth factor used is the higher of the county or city growth change. 22 CITY OF RANCHO MIRAGE COMPARISON OF ANNUAL BUDGET TO APPROPRIATIONS LIMIT FISCAL YEAR 2003-2004 FY 2003-2004 TOTAL APPROPRIATIONS $ 26,002,017 Less: Non-Tax Proceeds 13,412,626 FY 2003-2004 Appropriation of Tax Proceeds $ 12,589,391 Subject to the Appropriations Limit FY 2003-2004 Appropriations Limit 41,690,600 FY 2003-2004 Appropriations Under the $ 29,101,209 Appropriations Limit Note: The appropriations limit calculation excludes the Redevelopment Agency because of a California Court decision that determined that Redevelopment Agencies do not have the power to levy a property tax. Based on the same reasoning, the appropriations limit calculation, also excludes the Housing Authority. Additionally, the Community Services District is also excluded because it merely serves as an internal funding conduit for libraryand fire services. 23 RESOLUTION N0. 2003-69 A RESOLUTION. OF THE CITY OF RANCHO MIRAGE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2003-04 IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE CALIFORNIA GOVERNMENT CODE WHEREAS, Article XIII B of the Constitution of the State of California, as proposed by the Initiative Measure approved by the people at the special statewide election held on November 6, 1979 and amended in June, 1990 by the people, of the State. of California (Proposition 111}, provides that the total annual appropriations subject to limitations of each local government shall not exceed the appropriations limit of such entity for the prior year adjusted for changes in the cost of living and population except as otherwise specifically provided for in said, Article; and . WHEREAS the State Legislature added Division 9 (commencing. with Section 7900) to Title 1 of the Government Code of the State of California to implement Article XIII B of the Californi Constitution.; and . WHEREAS, the Department of Administrative Services of the City of Rancho Mirage has calculated the City's appropriations limit for Fiscal Year 2003-2004; and WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article ,XIII B at a regularly scheduled meeting or a noticed special meeting. and that fifteen days prior to such meeting documentation used in the determination of the appropriations limit shall be available to the public; and WHEREAS, Proposition 111, as approved by the voters of the State of California, requires a recorded vote of the City Council regarding which of the annual adjustment factors have been selected each year. 24 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rancho Mirage,. California, as follows: l: That, the following, factors or growth in the appropriations limit were selected: Change in California per. capita personal income: 2.31% Change. in City of Rancho Mirage population: 4.26% 2. That the appropriations limit for the City of Rancho Mirage as established in accordance with Section 7902 of the California Government. Code for Fiscal Year 2003-2004 is $41,690,600. 3. That- the .Mayor of the City of Rancho Mirage shall sign and the City Clerk shall certify to the passage and adoption of this resolution. APPROVED and ADOPTED this 3rd day Of July 2003. CITY OF RANCHO MIRAGE G. Dana Hobart Chairman ATTEST: Elena Keeran, CMC Secretary APPROVED AS TO FORM: Steven B . Quintanilla Board Counsel 25 Citizens Rancho Mirage City Council City Attorney City Manager / RDA & Housing Authority City Clerk Executive Director Records Management Library Services Circulation Inforamtion / Reference Children's Services Adult Services .Community Development Planning & Zoning Building & Safety Code Compliance Administrative Services Finance Information Services Personnel Management Services General Government mandated Programs Regional Planning & Implementation Special Programs Information & Marketing Executive Assistance Public Safety Riverside County Sheriff's Department Riverside County Fir Department Citizens On Patrol Services (COPS) Redevelopment Agency & Housing Authority Project Management Economic Development Project management Affordable Housing Program Home Improvement Program Title 25 Assistance for Mobile Home Communities Public Works Engineering / Capital Improvements Street Maintenance Parks / Median Islands & Parkways / Buildings & Grounds CITY OF RANCHO MIRAGE DISTINGUISHED BUDGET PRESENTATION AWARD GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Rancho Mirage California For the Biennium Beginning July 1, 2001 President Executive Director The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the City of Rancho Mirage for its two year budget for the fiscal years beginning July 1, 2001 and ending June 30, 2003. In order to receive this award, a government unit must publish a budget document that meets the program criteria as a policy document, as an operations guide, as a fnancial plan and as a communication device. The award is valid for a period of two years. We believe our current two year budget for fiscal years 2003-2004 and 2004-2005 continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 27 Califorma Society of Municipal Finance Officers Certificate of Award Excellence in Operational Budgeting 2001-03 Presented to Rancho Mirage This certificate recognizes the achievement of Excellence in Operational Budgeting and reflects an outstanding budget documeHt and the underlying budgeting process through which the budget is implemented. February 21, 2002 Chair, Budgeting & Financial Management Vice-Chair, Budgeting & Financial Management Dedicated. to Excellence in Municipal Financial Management